By Admin 
Stock Market Recovery Reasons: A strong comeback was seen in the Indian stock market on Tuesday, March 10. The market has made a comeback amid the environment of uncertainty created by the Iran-Israel war. The beginning of the day was also great. Both the major benchmark indices BSE Sensex and NSE Nifty 50 opened on the green mark.
At around 1:15 pm, the Sensex was trading at the level of 78,056 with a rise of 490 points. At the same time, Nifty 50 had jumped 187 points. The market got support from the fall in crude oil prices and signals from global markets. Let us know, what is the reason behind this rise?
1. Market supported due to cheap crude oil
An important reason behind the rise in the stock market was the sharp fall in the prices of crude oil. In the international market, Brent crude oil had reached the price of around $ 120 per barrel a day ago. But on Tuesday, there was a big decline in it and the price came down to around $ 89 per barrel. This sudden softening of oil prices gave some relief to the market environment.
Donald Trump’s statement is being considered the reason for this decline. He indicated on Monday that the current war related to Iran could end soon. However, he also said that if the oil supply from the Strait of Hormuz is disrupted then the situation may become tense again.
2. Strong signals from global markets
Positive signals coming from global markets have also helped in increasing the confidence of investors. The Nasdaq Composite closed at 22,695, up about 308 points or 1.4 percent. Whereas S&P 500 reached 6,795 with a gain of 55 points.
The Kospi index from Asian markets jumped by about 5 percent. Whereas Nikkei 225 had a rise of about 2.5 percent. The domestic market got support from this rise in global markets and it started trading positively.
3. Decrease in volatility index
India VIX, which measures the atmosphere of fear in the market, fell by about 13 percent to the level of 20.34. Generally, a fall in this index means that panic in the market is decreasing. This change indicates that investors’ confidence is gradually returning and they seem to be ready to take risks again.
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Also read: Iran increases Pakistan’s troubles, schools closed, vehicles halted, know the condition of neighboring Bangladesh-Sri Lanka